Russia buys Turkish tomatoes for a higher price through intermediary countries
A trader helps a customer to buy tomatoes at Dorogomilovsky food market in Moscow.

Despite the normalization of relations between Moscow and Ankara, the two countries have failed to remove the sanctions in their entirety, putting more costs on a struggling Russian economy



Diplomatic relations between Turkey and Russia hit an all-time low in November 2015 after the downing of a Russian jet near the Syrian border that violated Turkish airspace, resulting in economic sanctions that included a ban on some Turkish fruits and vegetables. While joint efforts to normalize bilateral relations have reaped benefits for both countries, additional efforts must be made to improve economic relations with Moscow.Russian and Turkish officials have met numerous times in recent months, alleviating some of the troubles brought on by the economic sanctions with the Russian government showing some flexibility regarding tourism and encouraging its citizens to travel to Turkey. However, Moscow has not shown the same willingness to compromise when it comes to products being imported from Turkey. While some agricultural products were removed from Russia's list of banned products, others still remain. While it is a well-known fact that for many years the Turkish tomato has dominated the Russian market, it was recently revealed that Russia has bought Turkish tomatoes from other countries at a higher price in a decision that has had a negative effect on the Russian economy.Speaking about the issue, Turkey's Greenhouse Investors' and Manufacturers' Association (SERA BİR) Chairman Müslüm Yılmaz stated that 200,000 tons of tomatoes were produced per annum in 6,000 modern greenhouses across Turkey, indicating that a certain portion of these tomatoes were designated for export.Yılmaz also noted that Russia, which was the biggest market until the jet crisis, did not lift the embargo after the normalization of relations between Turkey and Russia, saying that the embargo has negatively affected both Russian and Turkish citizens. Yılmaz added that SERA BİR does not understand why Russia is not lifting all of the sanctions, saying that high-level talks between Ankara and Moscow failed to yield results. Yilmaz noted that the primary reason for this is because of the battle on the black market for gains in Russia.Yilmaz emphasized that Russia is in need of Turkish tomatoes, saying, "Turkish tomatoes sent to other countries are sold at a higher price to Russia. In the Kremlin, where we were exporting about 500,000 tons of tomatoes, the Russian people are consuming more expensive tomatoes which come through intermediary countries. The Turkish producers and the people of Russia are suffering a tremendous loss, while players in the black market earn $500 million," he said. He also added that the cancellation of the embargo on tomatoes during the current period which has seen improving relations as well as improving trade volume would be highly significant.Underscoring that the tomatoes Russia buys from neighboring countries are all Turkish tomatoes, Yilmaz said that the increase in tomato exports after the Russian embargo reveals the situation more clearly. Export volume increased by 500 percent in Belarus, 160 percent in Azerbaijan, 200 percent in Poland and 150 percent in Nakhichevan. Indicating that the export figures suggest that Turkish tomatoes have been sent to Russia, Yilmaz said: "We are having difficulty in understanding the mentality that condemns the Russian people to the black market."Turkey's share of total tomato exports worldwide is 4.5 percent. Moreover, 62 percent of Turkey's total vegetable exports are tomatoes. Russia's decision to implement sanctions on agricultural products from Turkey since the beginning of 2016 has affected tomato producers the most.The value of tomatoes Turkey sold to Russia in 2015 was $259 million. In 2016, this figure was only $87,000.In addition, the sales of seedless grapes also stopped. In short, sales totaling $70 million in 2015 were zero in 2016 while the loss in pomegranate sales was 77 percent with sales of $35 million in 2015 falling to $8.2 million.The exports of raw vegetables and fruits to Russia, which were $875 million in 2015, decreased by 62 percent to $331 million in 2016.